What Is "Just-in-Time" (JIT) Liquidity and How Does It Relate to Sandwich Attacks? ▴ Learn

What Is “Just-in-Time” (JIT) Liquidity and How Does It Relate to Sandwich Attacks?

JIT liquidity is a strategy where a liquidity provider (LP) observes a large pending trade in the mempool and temporarily deposits liquidity into the AMM pool just before the trade executes. This provides better pricing for the victim, but the LP immediately withdraws the liquidity, capturing the trading fees and potentially the MEV profit that would have gone to a sandwich attacker.

While it can reduce the negative impact on the victim, it is still a form of MEV extraction.

What Is the Key Vulnerability That Sandwich Attacks Exploit on Automated Market Makers (AMMs)?

What Is a “Sandwich Attack” and How Is It a Form of MEV?

What Is a “Just-in-Time” (JIT) Liquidity Attack and How Does It Exploit Slippage?

What Is “Miner Extractable Value” (MEV) and How Is It Related to Front-Running?